EQUITIES
Asia-Pacific markets positive on Asian afternoon trade with most index advanced more than 1%. Australia’s S&P/ASX 200 led the gain by gaining 2.280%, followed by Hong Kong Hang Seng at 1.96%. Korea’s KOSPI jumped 1.73%, Singapore’s Straits Times index up 1.46%, and mainland Chinese stock, the Shanghai composite at 1.13% higher.
Markets in Japan are closed on Tuesday for a holiday.
Overnight on Wall Street, markets recovered from some of last week’s losses. The Dow Jones Industrial Average rose 1.6% to close 423.45 points higher, ending the day at 26,925.05. The S&P 500 added 1.2% to end the trading day at 3,310.24. The Nasdaq Composite closed 0.4% higher at 10,957.61.
OIL
Oil prices little changed on return of oil supply from Libya following an eight-month blockade and European and UK lockdowns, while traders also braced for volatility around the U.S. presidential election week. Currently, Brent crude futures traded to $38.92 a barrel, while U.S. crude at $36.87.
On Monday, Brent closed at $38.97 per barrel, while WTI futures ended at $36.81 per barrel.
CURRENCIES
The dollar index, which tracks the greenback against a basket of major currencies, last sat at 93.98, after hitting 94.29, a 4-week high on Monday, the highest since Sept. 29.
The risk-sensitive Australian dollar was lower at $0.7035, after the RBA on announced its decision to lower the cash rate target. The New Zealand dollar recovered from a Monday low, last fetching $0.6643 per dollar.
GOLD
Spot gold currently trading at $1,892.70 per ounce, while stands around $1,892.90 per ounce for gold futures. Previously closed at $1,895.80 and $1,892.50, respectively.
Silver trading at $24.09, platinum trading at $858.00 and palladium trading at $2,101.00.
ECONOMIC OUTLOOK
Asian stocks are set for cautious gain on Tuesday on upbeat U.S., China and eurozone factory data counterweighing the lockdowns in Europe to combat record COVID-19 cases, while the dollar and gold rose on U.S. presidential election jitters.
U.S. PMI manufacturing accelerated more than expected in October, with new orders jumping to their highest in nearly 17 years, while Chinese factory activity expanded the fastest in a decade and euro zone manufacturing also sped up.
The Reserve Bank of Australia on Tuesday announced its decision to lower the cash rate target to 0.1%.
To date, number of confirmed worldwide cases for COVID-19 pandemic has surpassed 46.801 million affecting 213 countries and territories around the world and 2 international conveyances, recording more than 1.205 million fatality globally.
TECHNICAL OUTLOOK
[USDJPY]
Important Levels to Watch for Today:
- Resistance line of 104.984 and 105.136.
- Support line of 104.491 and 104.338.
Commentary/ Reason:
- The Japanese yen weakened 0.06% versus the greenback to 104.73 per dollar in Asia trade.
- The safe-harbour yen still on steady ground in recent weeks against the greenback.
- Investors are sticking to the safe-harbour currency as Tuesday’s presidential election keeps financial markets on edge, though a surge in global coronavirus cases expected to continue to weigh on sentiment.
